Is this a way to delay surrenderring an Auto?

[oldbaddebts]

This information seems to be in bits and pieces in different topics, I just want to make sure I am reading things right.

I bought a used car in Aug. First payment due in Oct to Americredit, haven't made a payment yet. I filed Pro Se on 11/9. I have spoken to Americredit, they will not renegotiate any terms, and will discuss deferrments ONLY after I reaffirm. They generally said that they don't intend to get the car until after the discharge in Feb, but didn't specify if that would remain the case if I don't make payments, I didn't want to ask. They may or may not offer deferrments after I reaffirm, and it's approved.

My thoughts are, I owe right at retail, which is obviously over trade in, so I'm 3k upside down. They likely will never post payments to the CRAs no matter what I do, so it won't help my credit to keep it. I can't get a redemption loan through 722 (turned down) or fresh start (not licensed in NV). I can get it current and pay the extra interest and late fees to get back on the original ammortization schedule before the discharge if I decide to. Also, I do watch PACER for a motion for relief of stay.

From what I am reading though, it looks like I have the option of filing a notice of intent to reaffirm, wait a week or two, have them send me the agreement (they said all I have to do is ask them to), take a week before I send it back or request minor changes to it before accepting it and sending it back, then change my mind later to surrender it before or at the hearing to reaffirm. I tell them I'm not putting $ into payments until I know the reaffirm is approved, then be ready for them to take it soon after giving them notice I am surrendering, but hope they wait until discharge like they said, then I can get another vehicle completely outside of bk that will help my credit with a good downpayment, make 6 payments and refi to a decent rate.

I am by no means attached to the car. I am real basic on vehicles, anything with 4 wheels, a motor, brakes and a steering wheel is fine with me. I have no concern of them getting an extended time to object, cause they have said they won't, and if they do, I have paperwork to document the "final straw" that caused me to file was after I got the car, and I did have the ability and intention of paying.

It looks like some posters have been able to do similar to this, but I haven't found any single person with all of the pieces. I am focused on planning all options at every stage while I am in control rather than worrying later about what I could have done.

[keepmine]

The code does allow you to rescind a reaffirmation agreement within 60days of signing the reaffirmation agreement.

http://doney.net/bkcode/11usc0524.htm

(4) the debtor has not rescinded such agreement at any time prior to discharge or within sixty days after such agreement is filed with the court, whichever occurs later, by giving notice of rescission to the holder of such claim;


What you're thinking about really isn't unique. Not sure what pieces you're trying to put together. Just recind on schedule. Nowhere in the code are you required to explain your reasoning.

[rrockinggramma]

Americredit is a subprime lender. It has been my experience that it will be very difficult for you to finance another vehicle let alone refinance it in 6 months. I let one go back to Drive Financial and they are at the bottom of the food chain as well. In fact, my ex was turned down many times at dealers. Both of us were without vehicles for a while and it wasn't fun having to rely on others to get you around. And you have been turned down by 722, another subprime lender. Unless you have a super relationship with a credit union, it will probably be at least 2 years of rebuilding before you could finance another vehicle. You might want to start saving up your cash now to get a car free and clear to make it at least the next 12 months, should you follow through in giving back the car.

[aachudneymiles]

my advice go to craigslist.org buy a car cash.. 500-800 will get you something to get to around. good luck and god bless

ps why would you want to dig another hole by getting another car that about time you pay it off it will not be worth the ground its sitting on.. just me but i would rather stay debt free for as long as possible.

[tsmith05081982]

if you had a cosigner.. wouldnt that help?

[oldbaddebts]

Well, I looked at Craigslist and found ads for a major dealer giving a pitch about $500 down + license + paystubs = car. I spoke to them and they say it would be easier for them to do it if I trade in the car rather than surrender. Let me say I am glad I am planning ahead so I'm not rushed on this!!!

I told them I would be willing to trade rather than surrender if I can discharge the negative equity, but I am not sure how to go about doing that. I would be looking for a vehicle in the same price range as what I have now.

[oldbaddebts]

Just an update. I have applied with Prestige Financial (Loan Zone) and they said everything looks good but I don't have an actual answer yet. They do both redemption and replacement loans in bk, as well as subprime outside of bk. I am considering my best option to be to get a redemption loan for 8k, pay it off quickly with a second job and be done with it.

[aachudneymiles]

Well, I looked at Craigslist and found ads for a major dealer giving a pitch about $500 down + license + paystubs = car. I spoke to them and they say it would be easier for them to do it if I trade in the car rather than surrender. Let me say I am glad I am planning ahead so I'm not rushed on this!!!

I told them I would be willing to trade rather than surrender if I can discharge the negative equity, but I am not sure how to go about doing that. I would be looking for a vehicle in the same price range as what I have now.

key word is cash why get another car note thought you filed to get out of debt. plus your interest rate is going to be high .. well good luck with that

[CindyLou]

I told them I would be willing to trade rather than surrender if I can discharge the negative equity, but I am not sure how to go about doing that. I would be looking for a vehicle in the same price range as what I have now.

As far as I know you cannot trade and then discharge the negative equity. If you trade you trade. The negative equity becomes part of the new loan. BAD BAD idea!

[oldbaddebts]

Yeah, they were trying to tell me to trade before they realized how this works. They have never done financing inside of a Ch 7. It would be a replacement, not a trade, BIG difference. Replacement, I surrender and get a different vehicle, but the bank gets the current auto, not the dealership.

[oldbaddebts]

Just to update the topic. I got approved through LoanZone (Prestige Financial) for a replacement vehicle. They have three dealers in town I can work with, one of which is where I just got my current car, so I won't be going there, and I didn't care for the selection of used cars at the other two.

Lo and behold, I get a postcard from a dealer in Phoenix saying that they got my approval from LoanZone and they will either pay for my airfare to go down there and get a car or have it delivered to me. The interest rate is 19% for a Honda or Toyota, or 21% for anything else. It is a chain of dealers, and I can pick ANY 2000 or newer in Arizona at any of the chain's dealers (nearly 1500 cars). The only limitation is the payment can't be more than 17% of monthly income. They reduce the interest rate by 1/2% after every 3 months of ontime payments, and they report to all 3 bureaus. I have 4 vehicles I am interested in and I might go look next weekend. The used vehicles are $0 down, but you can get new if you put enough down to ensure you won't be upside down. Open Ch 7 is fine, but you can't take delivery until 14 days BEFORE your 341. They take open 13 with the required approval to take on debt.

After doing some research on the company, the biggest complaint I found is they call you and all of your references the day your payment is due and then continuously until it is paid, so I'll be sure to set it on autopay to arrive the week before it's due.

I'll post again if/when I get a car through them. This is a company that I haven't seen mentioned in the forum.

[BKcrazy]

I believe the sales tax in AZ is 5% for a car. If it's higher than the state you reside in, do not let them register it there.....They sometimes try to do that to you. Just do some checking on that and see if you can save a little money. I worked at AZ MVD (motor vehicle division) for about 5 years and people were doing that if taxes were lower where they lived.

[oldbaddebts]

Sales tax is 7% here in NV. I will register it here even though it is more just to be legal. Thanks for the reminder of that likely expense to plan on.

[BKcrazy]

Sales tax is 7% here in NV. I will register it here even though it is more just to be legal. Thanks for the reminder of that likely expense to plan on.

Well...What could happen is, you could get popped for that 5% here in AZ, and then pay the remaining 2% in NV. We had to do that at times when people came in to register and get a title in AZ. I can't remember what state offhand it was that was under 5% for sales tax on vehicles. And it isn't illegal to just register in the state you are in, and I didn't know you were in NV. As I said a lot of people would buy somewhere else (usually Cali and come to use to register when they got back in town. Darn Cali is expensive, seems expensive to just breathe in that state.

Good luck. I'll be getting a different car too, most likely when I get to another state. (I hate AZ)

[Runnin on empty]

19%-21% interest rate on a USED car? Ouch! Do yourself a favor, save up the cash and get yourself a $500-$1,000 car until things are looking better. You live in a warm climate, so it shouldn't be that bad of a proposition. I could see if you lived in the frigid, snowy NE like I do.

I'm a few grand upside-down on my new '07, and considering voluntarily surrendering it. Yes it will (quite frankly) suck to be driving a "beater" instead of a brand new car, but nothing beats not having a payment, and the humility it will teach me can definitely be a good thing.